Create accurate annual sales and labor budgets and easily manage changes during the year in progress.

Planning is not a one-time event. It typically starts with an “annual budget,” but is that budget still your game plan as the weeks and months pass by? We consider budgeting to be an iterative process, whether that moves from annual to period or seasonal plans, to the weekly forecasting and staffing—or perhaps your company prefers a rolling number of periods or quarters.

Your annual budget offers essential planning opportunities to align all aspects of the company around shared goals for sales and expenses—with the most important expense being the cost of labor. Logile Budgeting leverages our Forecasting and Enterprise Labor Model solutions as the foundation to drive an accurate budget calculation. Our superior machine-learning forecasting algorithms enable you to create an accurate sales and labor budget, complete with all the adjustment and average rate modeling you foresee for the upcoming year. But that’s just the start. Keep your operating goals aligned with those annual goals by reforecasting and replanning each period as time goes by. Logile Budgeting makes this easy and enables you to reposition planned activities (remodels, new stores, merchandising programs, etc.) as the year unfolds. This process keeps your labor model aligned with your financial objectives and provides stores with the resources they need and earn for each week’s business.

Budget without compromise

Iterative planning refinements keep your labor model aligned with key goals, annual budget, period plan, and weekly forecast and schedule. This process helps ensure both labor model alignment with annual financial objectives and provides stores with the resources they need and earn for each week’s business.

Logile Budgeting creates an effective sales and labor budget with all the necessary components built into one system. Use store-specific data and store-specific standards to develop the most accurate forecast of sales and corresponding labor needs by week, by department using a bottom-up methodology. Benefit from significant process advancements and guided workflows to manage the budget through multiple iterations or what-if scenarios. Once an annual budget is created, these iterations become the basis for nearer-term planning by season, quarter or period. Update objectives to make up for any shortfalls in sales or overspends on labor.

Capture critical inputs and track performance

Gain the flexibility to handle events and adjustments within your business as well as events like competitor openings or closures—and move these adjustments as plans or developments change. A robust process for budgeting average hourly rates (AHR) provides the key to translating budgeted hours into budgeted payroll dollars. And the KPI dashboard makes tracking progress a snap. Analyze budget results and compare to other versions, or even last year actuals down to a sub-department and weekly level by store.

Key Benefits

  • Produce weekly, by department, annual sales and labor budgets which inform quarterly or period plan revisions through the year
  • Manage the steps of the process all within one system in a highly collaborative process enabling multiple iterations
  • Document shared assumptions for all planning stakeholders
  • Create sales and volume forecasts using advanced machine-learning algorithms
  • Calculate labor using current and/or effective-dated standards that reflect planned changes in the coming year
  • Apply allowances and staffing modeling using the same logic used in weekly labor calculation
  • Layer project and program impacts such as new stores, remodels, competitive impacts and new program introductions
  • Understand the labor impact of each layered version you create
  • Model wage rates with functionality to normalize anomalies from history, apply new minimum rates, and model step increases as desired
  • View dashboard status of the budget in progress
  • Create accurate budgets that allow stores to build sales and deliver your brand to all customers

Continue reading

Let’s Connect